The Iron Age 1939-01-05: Vol 143 Iss 1

| FRITZ J. FRANK President VAN DEVENTER Editor E. WRIGHT J. A. ROWAN A. Il. FINDLEY Managing Editor News Editor Editor Emeritus z Machinery Editor Art Editor Metallurgical Editor High- hk Associate Editors JURASCHEK Consulling Editor and Washington Editor Jang Resident District Editors Pittsburgh Chicago Cleveland Detroit q ricing, | Iming- Editorial Correspondents lan London, England Cincinnati r Steel Boston Hamburg, Germany Jan Milwaukee San Francisco PE LEROY ALLISON toy EDMONDS be Newark, N. J. St. Louis Buffalo May by 38 Owned and Published by CHILTON COMPANY (Incorporated) Editorial and Plat Publication Office Chestnut and 56th Sts., 239 West 39th St. Philadelphia, Pa. New York, N. Y. OFFICERS AND DIRECTORS FRITZ FRANK, Executive Vice-President FREDERIC C. STEVENS, Vice-President oa JOSEPH 8S. HILDRETH, Vice-President Jan “| GEORGE H. GRIFFITHS, Vice-President EVERIT B. TERHUNE, Vice-President abe Coe WILLIAM A. BARBER, Treasurer JOHN BLAIR MOFFETT, Secretary z JOHN H. VAN DEVENTER, JULIAN CHASE, > Lea THOMAS L. KANE, CHARLES 8. BAUR, G. CARROLL BUZBY, P. M. FAHRENDORF 3 rly BAUR, General Advertising Manager DIX, Manager Reader Service p 60 j Member, Audit Bureau of Circulations P Member, Associated Business Papers ‘on, sessions, Mexico, Cuba, $6.00; Can- Single copy, cents. Cable Address, d with ADVERTISING STAFF Emerson Findley, 621 Union Bldg., Cleveland fe B. L. Herman, Chilton Bldg., Phila. Hottenstein, 802 Otis Chicago Leonard, 239 39th St., New York Peirce Lewis, 7310 Woodward Ave., Detroit C. H. Ober, 239 W. 39th St., New York D. C. Warren, P. O. Box 81, Hartford, Conn, Indexed in the Industrial Arts Index. — Published every tion Price: United States and Pos- # RC. ada, $8.50; Foreign, $12.00 a year. a Contents 1939 Dedication Issue the Editor Highlights the Issue Profits the Metal-Working World Tomorrow Industrial News Headliners (Insert) Looking Ahead with Our Steel Consuming Industries Armaments and the Capital Goods Industries Legislative Carryover Future Labor Relations Foreshadowed 1938 Steel Prices and Production Trends Metal Cutting Machines and Tools Mechanical Handling Looks Ahead Progress Beckons Materials and Metallurgy Steel Plans Its Future Realistically Putting More and Better Power into 1939 Non-Ferrous Metals the March Arc Welding Future Revealed Lincoln Awards Gas Flame Technique Lights the Way World Output Steel Statistical Section Production Activity Shown Graphically Price Trend Charts THE NEWS BRIEF Copyright 1939 by Chilton Company (Inc.) 100 106 114 122 128 134 140 146 155 162 168 185 189 203 222 tyes | | » 4 ‘ { ey Large Quality... Ryerson enters the New Year with large and complete stocks Certified Steel hand for immediate shipment. Whether you need pound carload, quick personal service assured. shall pleased send you the mmediate Shipment High Ryerson Stock List containing complete information all steel products. Hot and cold rolled carbon and alloy bars, bar size and tural shapes, wide range analyses plates and sheets, boiler and mechanical tubing, tool steel, rivets, bolts, nuts, etc., ete. Joseph Ryerson Son, Inc. Plants at: Chicago, Milwaukee, St. Louis, Cincinnati, Detroit, Cleveland, Buffalo, Philadelphia, Boston, Jersey City. 4 4 | y | | 4 4 q | 58—THE IRON AGE, January 1939 7 struc- boiler HIS vear 1939 will crucial one for America. will crucial year, particularly for American industry. year that will put executive caliber and foresight the test. Foresight, during the months ahead, will serve better than hindsight. The conditions surrounding business, producing product and particularly making profit, have been altered radically that the traditions and experiences the past are longer reliable guides safe business conduct. These must now more largely subordinated ingenuity and need vision today more than ever. need WORLD TOMORROW look forward the World Tomorrow and not backward the World Yesterday. fortunate, indeed, that the New York World’s with its inspiring keynote the World To- morrow, take place this year. And appro- priate too, that this Preview Number Iron which look forward rather than back- ward, should also able present our read- ers the first comprehensive pictorial preview Fair itself yet attempted this scale. the officials the New York World’s Fair, whose courtesy and cooperation have made this pres- entation possible, extend thanks behalf our readers and ourselves. Poster Joseph Binder THE IRON AGE, January é ay 4 ; t q 4 jus \ f | ge q New For 1939 Customer Service (COMPLETED DURING 1938) 1,000-ton blast for pig new coke ovens supply more and purer Five new hearths for increase making capacity hew 44" mill, now teamed with mill, making better sheets and Faster! This added equipment with its many important new control features for maintaining uniform quality, plus the prompt personal service the Inland’s organization, gives you definite reasons for making Inland your regular 1939 source for steel. SHEETS STRIP TINPLATE BARS PLATES STRUCTURALS PILING RAILS TRACK ACCESSORIES REINFORCING BARS 60—THE IRON AGE, January 1939 \ fda ¢ | | | This Issue MERICAN industry, shackled overgrowing Gov- controls, looks 1939 with hope but with full realization that this year will another period momentous struggle. Already shorn much its power regulate wages, hours and other cost factors, industry must center its efforts during 1939 produc- tivity. Along this path, concludes Van Deventer, editor-in-chief THE IRON AGE, the metal-working indus- try can insure itself fair profit margin. Mr. Van Deventer’s appraisal given “Profits the Metal-Working World NDUSTRIAL leaders who most reduce costs production the new year investigating, question- ing, comparing, adopting new processes, and modern- izing plant equipment, may find themselves among the makers the nation’s “industrial news headlines.” Dur- ing the last months many leaders industry made news throwing white light progress come 1939, which will end decade depression. few the many business men who stood out news makers 1938 are pictured “Industrial News Headliners HAT 1939 holds store for the metal-working indus- tries not wholly matter reading tea-leaves gazing into crystal balls. Coming events business, elsewhere, often cast their lights and shadows before. Throwing caution the winds, Wright, managing editor, and other staff members THE IRON AGE fore- cast per cent gain ingot output 1939 and analyze the trend “Looking Ahead with Steel Consuming the expected upswing steel production next year will rest upon the Government’s need for mate- rials defend the nation war-mad world. The New Deal may try hide its failures over-emphasiz- ing dangers war involving the United States. Yet most Americans will favor reasonable defense measures. What this may mean trade stimulant described James Ellis, associate Washington editor, “The Armament Program and the Capital Goods Industries” —Page ANGERS from within far outweigh dangers from abroad the minds growing number Amer- icans. one the most significant elections this generation, the voters Nov. expressed this concern calling for end “tax and tax, spend and spend, and elect and Government. Moffett, the Wash- ington editor THE IRON AGE, who each week presents shrewd appraisal business and politics, tells industry what may expect from the new Congress “The Legislative IGNS that the voters not want the Senate and House Representatives become, either name fact, “Congress for industrial were not lost upon John Lewis, the CIO leader. Mr. Lewis seems have opportunity, provided can con- trol the very real radicals his organization, building permanent labor organization. During the last few months, however, the Communist sympathizers and other radicals among CIO leaders seem have gained power and influence, James Rowan, news editor THE IRON AGE, decides “1939 Labor Relations Foreshadowed 100 REQUENTLY 1938 Mr. Lewis took part agita- tion the steel wage-price question which the President himself joined. Not only the prices them- selves but the traditional system pricing steel was re- vised last year. review price developments which will affect industry 1939 appears “Steel Prices and Steel Production 106 WwW vw ITH prices industry’s products growing more subject Government control, machine tool builders during 1938 engaged healthy competition fundamental design which will benefit the metal-working industry during the coming year its drive for profits. Frank Oliver, associate editor, discusses the results this competition and its effect the future “Trends Metal Cutting Machines and Tools”—Page 114 ILLIONS dollars can still spent profitably untold number American manufacturing plants save tens millions dollars now wasted through inadequate material handling methods. Industry far from the years its infancy but mankind still slow realize that the use muscle costs more than the use the machine. Frank Juraschek, consulting editor, looks this subject “Moving Materials 122 there more restlessness, more unwill- ingness rest upon the accomplishments the past, than among metallurgists and steel technicians. Con- cluding, for example, that the making steel along the pattern today too costly, slow and unpredictable, Lippert, metallurgical editor THE IRON AGE, takes high dive into profound subject “Progress Beckons Materials and 128 INCE the metallurgist alone cannot speed the metal- working world today into the world tomorrow, the sales, operating and other departments must their share. Beards directors owners the business—must help find the road more economical production. Campbell, Pittsburgh editor THE IRON believes that business controlled too strongly tradition “guided dead hands.” His analysis the situation entitled “Steel Plans Its Future 134 ECAUSE per cent industry’s total cost pro- duction, two billion dollars, represents its annual bill for power, industry must concerned with reducing power waste. Almost one-fourth the power used industry considered waste according sur- vey headed “Putting Power Work 140 ROSPECTS for the non-ferrous metals 1939 can not readily summed few words; each has its own story. After survey the prospects, Adolph Bregman, engineer, has decided that strongest hopes for expanded consumption non-ferrous metals lie building, and has arrived other conclusions which outlines under the title “Non-Ferrous Metals the March”—Page 146 THE IRON AGE, January 4 i H a | | : | & | VERY working part every machine and every member any structure designed with “safety This ranges from 300 1000 per cent the normal load and for the purpose pre- venting breakage. Industry and business too have factor safety which designed keep them from “going the profit margin. Overload busi- ness concern with excessive costs for long enough period and will break just surely would overloaded machine structural part. chine structure that will not break collapse and reinforce add its margin safety when the load grows heavier, far more im- portant and necessary this with our individual industries nesses. Especially now, when the cost load continually increasing. The factor safety vents business from breaking far more modest that that which engi- neers apply parts and structures. not 1000 per cent nor 300 per cent nor even per cent. From study all corporations the United *First series articles appear through 1939. 62—THE IRON AGE, January 1939 JOHN VAN DEVENTER Editor, THE IRON AGE States over the period years from 1922 1934, inclusive, this per cent. And that period takes eight fat years and five lean ones. The preservation this exceed- ingly slight margin safety, and its reinforcement possible, the most important job that this country has before it. Upon this job depends the major revenues Government, the security present workers their jobs, the possibility reabsorbing the unemployed private industry, the standard living America and the perpetuation the Constitutional democracy free enterprise. national interest stake, seems strange indeed that our Government officials, instead concentrating their energies and the millons public money their disposal vitally important task vate enterprise survive, should progressively, though unintentionally, weakening and diminishing this safety factor week after week and month after month. The Right Living Profit have heard much, from Wash- ington and elsewhere, during the past six years the rights labor, ex- tending even its right sit down seized plants defiance law and court orders. have seen departments and bureaus the ad- ministrative branch Government tacitly turned into promotional agen- cies for particular form union- ism. have heard much about the obligations both Government and business the unemployed. have heard about the obligation estab- lishing annual wage and the de- sirability profit sharing. But how much have heard, from official quarters and Government spokesmen, about the prior right and necessity profit margin, not for the benefit merely investors and owners but safeguard the whole public? That, gentlemen, responsibility that apparently delegated exclu- sively private enterprise and initia- tive and will remain such until the people our country heed the fable the Goose that Golden Eggs. have said that the average profits, after taxes, our corporation al- most per cent. This statement should have been made the past instead the present tense for the period cov- ered the year statistical analyses ended 1934. And since that time, 1 \ ~ ti 0 ren- the and ave tab- de- 10W nen, clu- the the fits, yses ime, indeed, since 1933, powerful forces have been work which have seri- ously eaten away even that meager margin safety. Regimentation Cost Elements the good old “horse and buggy” days, and indeed until much later than that, most the elements cost were controllable management. The only one that was not, taxation, did not amount appreciable per- centage. Little little since that time, and continuously over the more and more control the ele- ments cost has been taken away from management the operation legislation and other factors outside management’s direct sphere in- fluence. Wages and hours, for example, have always been principal element cost. Formerly these were, large extent, controllable manage- ment. Today, Government and labor unions have assumed the larger part this control. Overtime, the past, has likewise heen under the control management. management has little say about this important factor meet the peak conditions that face all demands. which the past has been insignificant portion costs, has increased the point where now one the severest drains the corporate pocketbook. Social Security taxation alone has put tremendous financial burden upon industry. All these elements cost have not only been taken away from the control management, but addi- tion are piling larger burdens constantly increasing weight. Wages hours progressively shortened legislative fiat, and taxation will in- crease not merely with the growing powers the Social Security man- date, but make for the alarming continuing Government deficit. Material Costs Will Rise Also Materials are important element cost. While the prices materials are not yet under Government regi- mentation, they are intimately affected all the cost-increasing factors mentioned above having slipped, bit bit, out con- trol. And today, even though have not yet reached state dictated price economy, these uncontrollable ACHT-LIKE its lines this the New York World's Fair, where connects the Administration Building with the exposition grounds. Its hull, rails and abutment are fin- ished clear-varnished fir. The graceful steel supports are painted York City blue.” factors cost are already dictating higher prices materials every side. These prices will continue rise, adding still more the heavy burden uncontrollable costs. This disturbing picture—a pic- ture which deserves far more con- sideration and painstaking analysis than has been given most man- agement executives. For, matter how has happened, nor who has been blame for it, the picture one conditions they exist today conditions that come close ham- dustry. And these conditions are stringent that they force us, whether want not, consider this final question: What Have You Got Control? With wages, hours, overtime, taxes and material costs out manage- control, what has left deal with making, trying make, Just three things, namely: Prices, Interest Charges and Productivity. Let’s look these one time. Take prices first. Did you ever stop think that cost itself means nothing, and that likewise price itself means nothing, but that hy law ad- ¥ the relation ratio the one the other that means everything any business One the most serious problems management has arisen from the disruption formerly accepted ratios this character New Deal legis- lation. For example, such ratios that wages total cost, total cost selling price, selling price pur- have been thrown out gear the events the past six years. Take the ratio cost Your costs have gone up. you could raise your prices the same proportion and thus restore the ratio which spells profit you, the profit “margin safety” could restored. But you cannot that, because pur- chasing power has not been similar measure, and therefore rise your prices would mean less business. the increased-price ave- nue will not let you out. You cannot very much more with interest investment in- debtedness unless you through the wringer. And for investment inventory, most concerns have come down “hand mouth” already. basis Productivity Your Only Way Out When all said and done, all that industrial management really has left duction per man-hour per wage- dollar. industrial manage one and only defense against all the other uncontrollable and constantly increasing elements cost. making. the one big subject that should and must the minds industrial executives, first and fore- most, during 1939. Delay coping with this problem productivity will dangerous view the times and their trends. shadows coming events are already being cast upon the crystal ball which portend efforts take even this one remaining element cost out the hands management. Inconceivable? Then consider this statement: “Science invention have been responsible for the de- pression and for this country” Since science vention have always been the parents productivity, this equivalent putting the blame upon for our recent and present misfortunes. them from soap boxes and dismissed them the ravings men whose thinking pre-horse and buggy days the rantings envious incom- petents. But when such statement made, this one was, Senator Joseph chairman the Presi- Monopoly Investigating Com- mittee, public address New York few days prior the opening his committee’s hearings, manage- ment may well stop, look For this committee scheduled sit judgment upon dustry and business for the next two years. And such productivity, its chairman, before single line testimony heard, does not augur well for the fullness fairness the hearings come nor for the fate the the French system applied America with New Deal improvements. France, the de- fendant assumed guilty unless can prove his this investigation, may not given chance prove that! Unless this grandiose two year in- quisition dies from malnutrition public interest—which fair possi- bility—there the alternative possi- bility that two three years from now you may have secure permit from Permanent National Resources Committee before you are permitted buy improved machine tool substitute conveyor for barrow. can’t happen here! But you would have said that five years ago about Federal Wages and Hours law about the unionization De- troit, about the possibility being ordered the Government rein- state, with back pay, strikers who destroyed your property and went jail for it. All, all that and more has happened here. the time should American productivity compelled wear muzzle and license, and spend its time the dog house, the concern which has taken advantage the interim bite chunks out cost will have advantaged com- petitive position. And even should such restrictions not eventuate, such concern will still ahead its less progressive less able competi- tors. This year, the keynote executive through cost should year investigation, questioning operations and processes, placement and modernization equipment. There time save and time spend, time sow and time reap. And this year the time spend and sow that you may insure profit margin safety the metal working world tomorrow. The wise hunter gets his birds dur- ing the open season. HIS great stain- less steel hemi- sphere, ft. high and 132 ft. diam- eter, will house two floors exhibits the United States Steel Corp. and its subsidiary com- panies. striking architectural the building the use the struc- tural steel members basic element de- sign. These will painted blue, while other details will accented red. P's | | a rs ) in- from ermit urces you ago being rein- who more that and the ntage com- hould such its aving oning re- save year that dur- stain- hemi- high diam- two States com- eature ing struc- rasa de- while will red. BLOCK Inland Steel Co., which Mr. Block chairman, found itself during much 1938 outstanding victim Labor Board vaga- ries. The NLRB once backtracked Inland, then came back with another decision (cheered the CIO) LEWIS meet the quickened tempo chang- ing conditions steel, Jones Laughlin Steel Corp. already had chosen him chairman. Last February also took over the presidency, becoming one the few two-job top executives the industry BRYANT With prospects that industry will busily retooling 1939, for peace war, the Bryant Machinery Engineering Co. executive was lifted into leadership dis- tributers belonging the Associated Ma- Dealers America INDUST SYDNEY McALLISTER Annoyed FTC allegations regarding farm equipment monopoly, Harvester Co.'s president early July char- acterized the Commission's action, similar other New Deal business-baiting GEORGE BUCHER Cable winders for Westinghouse Elec- tric Mfg. Co. scoff politicians who say that America is no longer a land of oppor- tunity. One them (1909) last year rose the presidency the company. George Bucher HUGH MORROW The president Sloss-Sheffield Stee! Co. warned the Public Contracts Board (July) that its wage actions might ‘disrupt the economic life the place that has recently been re‘erred this nation's Problem No. IAL NEWS WILLIAM DAVIDSON the S.A.E.'s new president, Mr. Davidson, General Motors Corp. Executive (Winston Engine division), finds technical men broadening their interests to include many subjects such the the machine on employment” q MARSHALL POST When the American Asso ciation members looked each other over ¢ select new president, the honor went Post, who also vice-president the Birdsboro Steel Foundry Machine 4 WILLIAM DAVIDSON the new president, Mr. Davidson, General Motors Corp. Executive (Winston Engine division), finds technical men broadening their interests include many subjects such the the machine NEWS MARSHALL POST When the American Foundrymen's Asso- ciation members looked each other over select new president, the honor went Marshall Post, who also vice-president the Birdsboro Steel Foundry Machine Co. RAOUL DESVERNINE the America the helped elevate him the presidency Crucible Steel Co. America, following lawyer-executive tradi- tion which includes such names that the late Judge Gary FRANK PURNELL Good-naturedly tilting with the LaFol- lette Civil Liberties Committee, dent Youngstown Sheet Tube Co. said: just don't believe undercover activi- ties labor espionage. don't think serves any useful DETWILER Once Allegheny Steel Co. time card employee, Mr. Detwiler rose head that company, unite with Ludlum, direct the resulting merger, one largest, chairman the new Allegheny Ludium Steel Corp. ALFRED PRITCHARD SLOAN Meeting part, for General Motors Corp. employees, the desire all men have for Mr. Sloan made his- tory (November) announcing wage plan guaranteeing most employees certain income for 1939 BENJAMIN FRANKLIN FAIRLESS for commuting, Mr. Fairless 1938 became the first Steel Corp. president recent years work (his office the Koppers Building, Pittsburgh) within few miles some its largest plants struggle preserve the American system free enterprise against powerful domestic enemies overshadows all else the history business for 1938. Nevertheless, engineers continued develop new ma- SNYDER, JR. Few business men these turbulent years see their companies reach years age, then press onward new usefulness. One the few the head the Snyder ore and pig iron interests, Pittsburgh HENRY FORD charm face-to-face talk (May) with the President, the automobile maker said: the Government will just get out the way and give natural enterprise free swing will the EDWARD STETTINIUS terest obligations society, Steel chairman only last month dustry plow a single furrow toward a strictly commercial GIBSON won for him and co-author (his wife) the grand award of $13,941 the James Lincoln Arc Welding Foundation's $200,000 contest MYRON CHARLES TAYLOR His desire balance with through infusion new blood led Mr. Taylor to displace himself as U. S. chairman favor Edward Stet- tinius, appoint Benjamin Franklin Fairless as chief administrative officer. TOM MERCER GIRDLER Angry radicals find the American and Steel Institute president grows less and less satisfactory as a target. Meanwhile Mr. waits for public opinion come around his viewpoint regarding Wash- ington demagoguery chines and new processes, and laid plans for new industri Managers factories sought new markets for their ucts, and step step sought work out peaceful agr ments with employees who sometimes had been goaded greedy radicals and politicians. GEORGE MATTHEW VERITY not periods, American Rolling Mill Co.'s chairman forecast that air-con- ditioning may outstrip the automobile by 1948. April surrounded friends, : ce a TOM MERCER GIRDLER EUGENE GRACE Emphasizing the cooperative nature CHARLES HOOK Frequently 1938 the president the National Association Manufacturers car- JULIUS HEIL Told that business men should run for and Steel Institute president grows less and industry, the Bethlehem Steel Corp. presi- office, the president the Heil Co., industry's viewpoint the nation. less satisfactory target. Meanwhile dent reminded his employees that company's waukee, trounced Philip LaFollette for Dec. said: again American Mr. Girdler waits for public opinion come ington demagoguery sesses, and laid plans for new industries. sought new markets for their prod- sought work out peaceful agree- who sometimes had been goaded politicians. GEORGE MATTHEW VERITY public relations (its good name) was their around his viewpoint regarding Wash- concern well the concern the WALTER WAGNER Wisconsin's governorship, invited driven out radical legislation back people are willing give free enterprise management opportunity to prove its case While industry was forced again and again sell itself the public and fight off the attacks critics often advocating introduction alien methods into our Govern- ment, leaders industry found time for other significant accomplishments. DAVID WALLACE Inventor the Superfinish technique, CLARK WALES Choosing look life decades, Under leadership Mr. Wagner (of Engineers noted with interest 1938 not periods, American Rolling Ford Motor Co.), its president, the American that Clark Wales, assistant general man- the president Chrysler Corp.'s sales divi- Mill Co.'s chairman forecast that air-con- Society Tool Engineers has launched ager the Algoma Steel Co., Sault Ste. sion, last year gave industry entirely new ditioning may outstrip the automobile national survey determine the effects Marie, Ont., was elected president the conception what commercially obtain- able the way refinished surface finish modern machines employment and our standard living Association and Steel Engineers DR. FRANK BALDWIN JEWETT Bell Telephone Labora- tories) went the 1939 John Fritz gold awarded for achievement therance industrial research, development ERNEST TENER WEIR Fighting political domination ness, the National Steel Corp. chairman freely blamed President Roosevelt's policies for the 1938 depression, declared (February) that what needs most pledge the system will stay CHARLES FRANKLIN KETTERING denounced (June) the whose heads (sometimes feet) are frequently firmly planted the sky, frequently ex- presses his faith his progress, saw new industries years ahead What industry did 1938 has bearing 1939 and the years follow. What did was Big News. Some the men who made big industrial news last year are here pictured THE IRON AGE alphabetical order) Headliners 1938." WENDELL WHIPP Co. twice figured importantly 1938 indus- trial news: when applied fiame hard- ening to lathe bed ways for the first time, (2) became president of the National Ma- chine Tool Builders Association LAWRENCE One the important engineering posi- tions American industry is, naturally, that the chief engineer United States Steel Corp. Mr. Lawrence made news among technical men when, January, was ap- pointed to that post. THE IRON AGE, January 1939 YOUNG Blaming progress political dem- agogues stirring class hatred the Wire Co.'s chairman graphically reminded amployers and employees that 84c. of each produced industry goes workmen . { { f Age SSUMING more favorable back- ground for business 1939, with fresh shocks from either foreign domestic political disturb- ances, there should fairly substan- tial gains many lines activity that contribute the iron and steel and related industries. Steel ingot production 1938 was about 28,500,000 gross tons, including electric and crucible. Actual consump- tion steel last year was, however, larger than this amount, there was considerable carryover from 1937 production. There way esti- mating the amount this inventory that was consumed 1938, but was sufficient depress steel production exceptionally low level during the first several months last year. While heavy inventories were not the sole reason for this depression, they were important factor. the beginning 1939 inventories are normal size and many in- stances below normal. Production the moment very largely for im- mediate use. During the fourth quar- ter the past year the industry pro- duced ingots average rate about 40,000,000 tons year. This was without benefit even fair vol- ume orders from such important STEEL CONSU TRIES INDUS steel consuming channels the rail- roads, the oil industry and users tin plate. Outlook Improving Expectations for 1939 steel business are that most steel consuming lines will well the fourth quarter last year and that some them will much better. While boom envisaged even the most opti- mistic, regarded fairly certain that 1939 will outdo 1938 very fair margin. all probability the first half will better than the last half unless mid-year private under- takings should have made some the slack that must inevitably follow slowing Government spending. One the least predictable features 1939 business prospects lies the railroad situation. While freely admitted and the facts and figures speak for themselves—that many the railroads will eventually need extensive rehabilitation programs, they have been able stave off such expenditures during their periods depression; whether they undertake large buying programs during 1939 will depend primarily tors: Their own earnings, the trend carloadings and the kind Govern- ment aid, any, that provided Congress. From steel tonnage standpoint too much should not expected from any further armament program that Con- gress may authorize. The steel indus- try will benefit less than the machine industries that are called upon much the high-grade precision work that required many the items that would purchased for the Army and Navy. Even though the naval and merchant grams will take fairly large tonnages steel the aggregate, the time re- quired build ship spreads the steel rollings over considerable period, that this business will create pres- sure steel mills. Steel Output Gain Expected Any calculation the probable vol- ume steel business 1939 should qualified if—if normal trends are not seriously disturbed outside influences. there war Europe, predictions would awry. Hopeful expectations for this year are also pre- dicated the possibility that policy moderation will followed Washington. Basing our predictions known factors and with feeling hope that some the unknown factors may turn out better than can now safely counted upon, seems probable that 1939 steel ingot production will total least 40,000,000 gross tons, ap- proximately per cent gain over 1938. some unlooked-for psychological factor introduced into the situation, such, for example, rise steel prices during the year, some specula- tive buying would result and some dormant projects might rushed into the market, thereby boosting produc- tion further than would likely stable market. The outstanding unfavorable factor the situation today that much the present activity has been artificial- stimulated. developments, poli- tically and otherwise, are such give further confidence private en- THE IRON AGE, January f ‘ ‘ = + xk ait q ; terprise, steel business could conceiv- ably improve more than the per cent visioned our present calcula- tions. can reasonably argued that steel consumption over the past few years, despite the boom 1937, has averaged below what might con- AUTOMOTIVE steel consumer and factor the general economic picture, the automotive industry prom- ises maintain important position during 1939. During the final quarter last year played its familiar and potent role stimulating trade and other branches American industry. Estimates demand for 1939 model cars vary somewhat but are surpris- ingly general agreement, consider- ing that individual executives and corporations must necessarily have dif- ferent outlooks. The great majority set per cent the probable increase production and sales; two producers with expanded lines forecast their individual gains about per cent over last year. the months ended Sept. sidered the normal requirements the country. Taking 1937 and 1938 production together, the monthly aver- age has been only about per cent, which below the average so- called normal periods. Deficiencies many lines are being built up, thereby pointing much larger steel produc- ° ° ° (which roughly represented the 1938 model year), production was 2,704,992 units, according the Automobile Manufacturers Association; thus should set the probable 1939 model output close 3,500,000—optimis- tic anticipation 4,000,000 better. Looking little further ahead, fred Reeves, vice-president and gen- eral manager the AMA, predicts that reciprocal trade treaties and im- provement economic conditions gen- erally will bring again the time when the auto industry will turn out 5,000,- 000 cars did 1929 and 1937. indication 1939 prospects, the last three months’ production barometer—it will total better than one million cars, compared with only million and quarter during all the rest the STRIKING mural decoration Andre Durenceau the Metals Building the New York World's Fair shows the spectral colors seven metals and the sun semi-circular panel, 270 ft. long decoration. The material used rubber base paint. tion some future time when funda- mental conditions have returned sound basis. Analyses the outlook various important steel consum- ing channels, prepared vari- ous members THE IRON AGE editorial staff, follow. A Managing Editor the present average rate pro- duction can maintained through the first half the new year, and that reasonable the 3,500,000 mark will reached. Sales and busi- ness conditions during the closing months this series production, after July undoubtedly will the final measure. The goal that has been set rea- sonable one. the basis registra- tion figures for the past dozen years, projected domestic sales figure 3,000,000 (the rest production be- ing for vehicles not registered the United States) just the better side the 12-year average. meet this goal, production prob- ably will maintain its 100,000-a-week level through January, may dip after dealers are supplied and back orders completely filled about mid-February, but will rise sharply through the spring months peak that should carry through June, with the usual seasonal effects and new-model virus being felt after that. Truck Production May Spurt freely predicted that truck pro- duction, which has suffered greatly, destined show the greatest percent- age increase the output moves into higher brackets. During the past year there have been notable ficient, compact and versatile units are being offered today than year ago. Predominating the latest model. fered are diesel power plants made several manufacturers | q | q 4 | 7 7 , | y engine trucks which provide longer bodies without greater wheelbase. Rumors impending introduction new midget cars sell low prices prevailed last year but were effectively squelched when such cars failed reach the market. Such projects are getting some attention, mostly outside the industry, but matter fact that the used car business, which said now gross about two billion dollars year, acts floor under new car prices. least the auto industry feels certain that the average American prefers for his dollar powerful and comfort- able used car less speedy and less powerful midget auto which would sell the same price new. unfolding plans which promise have im- portant effect auto markets—par- ticularly used car markets. apparent those closest the automo- tive scene that the industry nearing the day when will make extra effort build many more miles trouble-free service into each vehicle. Before the Society Automotive tionally known designer pointed the way engines which would require except possibly once year after 25,000 30,000 miles operation. another case, the re- search division plant which serves the industry has had engine op- eration, test, for three years demonstrate that virtually unnecessary and accessory replacement evil that can almost eliminated. Moreover, Wallace, the Chrysler Corp., who during the last year has made industry extremely conscious the merits fine surface ARRING the possibility European war, and assuming that the November elections will have moderating effect future Federal legislation, fairly certain that moderate, yet definite gain construction activity will made 1939, estimate the Dodge Corp. fixes the gain per cent over the 1938 volume. This would mean that the volume construction contracts munications Plaza, showing the intricate steel work the 200-ft. Peri- sphere and the 700- ft. Trylon needle, before the applica- tion exterior coat- ing. Visitors the exposition will tour the inside the great ball “magic high the interior, where magnificent spec- tacle will sented interpreta- tion the Fair's theme, the World Tomor- finish, predicts that removing the basic causes wear engines and other moving parts will possible operate 100,000 miles with- out repairs. This will dou- bling car life, present standards. Within the industry there seems fear that increased car life will affect new car sales. Periodic new models will continue the incen- placed the year will total $3,500,- 000,000, compared with $3,240,000,- 000 1938. Most this improve- ment, believed, will come through sharp increase private building, particularly the industrial and com- mercial building classification. The total private construction contracts for 1939 may about $1,900,000,000, per cent higher than the 1938 figure. Public construction, the tive for one-third the car-owning population buy new cars. The traded-in car will have tial mileage them and will therefore have greater resale value. large part the population will find cars can afford purchase and operate economically, more people will own cars, and the bogie saturation pushed away again. other hand, will smaller volume 1939 than the past year, perhaps much per cent less. Public Work Major Factor Although the current Federal pump priming program scheduled fade out the picture mid-year, public construction will unquestionably major part the 1939 picture THE IRON AGE, January ter > ter ers the uld ual put ing ble ef- THE MARK GOOD WIRE FOR OVER YEARS From suspension bridge cables bobby pin wire from wire rope meat skewers. far apart these products are, they hardly even suggest the wide range and diversity the Roebling Wire and Wire Products Line. But all these products have one characteristic com- are the result Roebling’s over years specialized experience, high quality standards, and con- stant development one the country’s most modern and completely equipped research laboratories. The Mark Good Wire and Wire Products for over years. John Roebling’s Sons Company, Trenton, New Jersey. Branches Principal Cities. WELDING WIRE : was 1938. the latter year the value public contracts was equal per cent all construction. 1939 will probably dip per cent. The importance Government building the past three years further emphasized data collected the American Institute Steel Construction, which show that this type work accounted for per cent fabricated steel sales 1938, compared with per cent 1937 and per cent 1936. the early part 1939 public works will probably continue ac- count for over half the structural steel sales, tapering gradually average perhaps per cent for the year. the nature the mechanics the production and consumption structural steel, rolling schedules not react immediately changes the dollar volume awards. average, two months elapse between the allotment and the rolling specifica- tion the required steel the con- tractor. the case large projects shipments are extended over period time. Thus evident that the ef- fects the Federal program will felt the steel industry for some time after allotments cease. This borne out the reports the Amer- ican Institute Steel Construction covering shipments and bookings structural steel. While bookings 1938 rose from low 57,144 tons February high 137,642 tons October, shipments slightly from 81,161 tons 95,205 the same period. private checking PWA jobs for which funds are cates that between 750,000 and 1,000,- 000 tons structural steel placed with fabricators and mills dur- ing the next several months. Large Projects Increasing Large public projects are growing importance. 1938, according the institute, jobs involving between 1000 and 10,000 tons accounted for per cent the year’s bookings. Judg- ing from the large number hous- ing projects, bridges, elevated high- ways, etc., which are being planned the present, this tonnage classification will probably take still larger share 1939. The construction private houses, which has lagged sharply since 1934, took encouraging upward turn the last half 1938. industrial op- erations continue improve through 78—THE IRON AGE, January 1939 1939, this upward movement should accentuated. The Federal Housing Administration reports that mortgage commitments 1938 totaled about $650,000,000, against $447,500,000 1937, and predicts that gain much per cent can expected Low Cost Housing Gains Headway The other phase housing, the large, low-rent type project, grad- ually gaining headway. the months its existence, the United States Housing Authority has allotted $647,575,000 for work this nature 155 communities. Over the past six months considerable private interest has been aroused this type hous- RAILROA URING the period from 1926 1937 inclusive, freight car purchases averaged 42,850 cars year, while the retirement cars that period was average an- nual rate 103,817 cars. This dis- crepancy between cars installed and cars retired has created need for new the point where now estimated that 100,000 cars year would have installed provide sufficient rolling stock handle sustained volume 800,000 carloads freight week. 800,000-car volume not beyond achievement 1939 business improves level comparable with that the mid- summer 1937. matter rec- ord, the 1937 weekly average, 731,000 cars, was not far from this level. 1929 weekly carloadings were far excess this 800,000-car total, aver- aging they did over 1,000,000 cars weekly. build these 100,000 cars year would require approximately 225,000,- 000 man-hours. The material would aggregate 1,400,000 tons rolled steel, 265,000 tons cast steel and 300,000 tons cast iron wheels year. generally agreed that some ort Federal aid will necessary the railroads are appreciably im- prove the condition their track and rolling stock 1939. Because they went along with the President’s medi- ation board withdrawing its re- ing construction. The present year should see more intense participation the part private enterprise this field. The significance this con- struction activity the steel industry indicated the 50,000 tons structural steel that was required for the housing project New York sponsored the Metropolitan Life In- surance Co. Prefabricated steel houses have shown much progress over the past year, but there little the imme- diate outlook suggest that this out- let for steel products will expand important size 1939. Numerous problems, notably that distribution, must yet solved before this field will develop into important steel consumer. quest for per cent pay cut, the carriers have reason expect least favorable attitude from the Admin- istration. Government assistance sought only for the short term. For the long range period, neither asked nor wanted. Freedom manage its own affairs and relief from excessive and unreasonable taxation and regulation are all any road desires for the long run. Improved general conditions al- ready have had favorable effect railroad earnings, and, when business gets back normal, there reason believe that the roads could meet their current obligations, purchase needed equipment, and show profit. Net operating income controls vol- ume railroad purchases. Age estimates 1939 net income will $610,000,000 and that buying from manufacturers will least equal that amount. Though far below 1937, this figure much higher than 1938 and about equal 1936. All roads are badly need new cars, new power, new track. least per cent the freight cars and per cent the passenger cars now service are over years old. The closing months 1938 indi- cated revival interest the part the roads for new equipment, or- ders inquiries having been an- nounced for about 5000 cars. Buoyed increasing traffic, and the ex- | | 4 q j 4 4 q q q 7 » building being erected the General Electric Co. house its exhibits which stands 68,399 sq. ft. plot, general sections, one devoted product display, one having “house magic” auditorium, and which million volts artificial lightning will generated and discharged spectacular fashion for Fair visitors. pectation further general improve- ment, and Federal help some kind, the railroads are moderately cheerful they enter 1939. Barring unfore- seen adverse legislation SHIP mercial, the one most de- pendable source business 1939 for steel and machinery manu- facturers. While the steel require- ments for hulls and superstructures are often given the most emphasis, the ramifications ship requirements ex- tend the benefits shipbuilding pro- grams many lines industry, and many these subsidiary needs are indirect benefit steel and ma- chinery companies. naval and com- The program the United States Maritime Commission for the con- struction merchant ships and that the Navy Department for naval ships have received but recapitulation may informa- tive the work that will probably carried out during 1939. The Maritime Commission’s long- range program contemplates the con- reversal the business upturn, the roads should improve their net earn- ings position and increase their pur- chases equipment and materials the coming year. BUILDING... struction 500 ships over 10-year year cost $1,250,000,000 all, about $125,000,000 year. The 1939 program will run somewhat ahead the 50-ship yearly average con- templates the awarding total ships cost about $158,000,000. These are tankers, three passenger liners, four P-2 combination passen- ger-cargo ships, cargo ships and C-3 cargo and combination cargo-passenger ships. The total esti- mated steel requirements for these ships 259,760 tons. Dec. 20, 1938, contracts had been awarded for ships, some which will launched 1939 and others will not completed until 1940 and 1941. Steel for these ships, whose requirements total close 200,000 tons, will part the steel in- 1939 backlog. Shipbuilding companies which are beneficiaries the Maritime Commis- sion’s program thus far are the Fed- eral Shipbuilding Dry Dock Co., the Newport News Shipbuilding Dry Dock Co., the Sun Shipbuilding Dry Dock Co., the Tampa Ship- building Engineering Co., and the Sparrows Point and Fore River ship- yards the Bethlehem Steel shipbuilding division. Although the primary purpose the merchant ship program pro- vide for the carrying large part our foreign commerce Amer- ican ships, there also national de- fense angle. “Without adequate merchant marine serve its aux- iliary our Navy would paralyzed,” said Thomas Wood- ward, vice-chairman the Maritime Commission, recently. The Navy Program Events abroad have forced the United States revise upward its naval shipbuilding plans. Some con- tracts have already been awarded, notably for four battleships. The com- plete program may not definitely known until recommendations the President and the Navy Department have been acted upon Congress, but the Navy already has received ap- propriations for ships—four battle- ships, one aircraft carrier and eight cruisers. These appropriations were $138,063,150 provided for the 1939 Naval appropriation bill plus $16,050,- THE IRON AGE, January 1939—79 in- on al- is eet fit. ol- ay hat his art or- ex- unusual triangular-shaped Petroleum Industry Exhibit Building the New York World's Fair 1939. Part the display made the process drilling for oil demonstrated means the derrick, sho